The company once manufactured specialty chemicals especially ethylene dioxide derivatives at its Ankleshwar plant until it sold the facility to Huntsman Corporation in 2011. Since then the company has been sitting on the piled up cash in the form of investments. As on March 2012 the company had assets worth of Rs 47 crs with investments accounting for Rs 45 crs.
As shown in the calculations above despite assuming that the investments are quoting at 50% of the book value the stock can still double in coming days. The investors are forewarned that these numbers are of 2012 and the company can come out with surprises either way. Techically too as shown in the chart given below the price pattern looks like a pennant which normally heralds a surge in stock price. 200 day and 50 day moving averages too seems to lending support.
It is suggested that speculators can go long on this stock with a tight stop loss of Rs. 9.50.
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